Economy

Minister Of Finance On External Debt And Economic Outlook In 2020.

Zambia’s external debt has risen to US$11.2 billion from US$10.23 billion as at the end of December, 2019 according to Finance Minister Dr. Bwalya Ng’andu.

“When I last updated the nation, in July 2019, the stock of external debt at end-June 2019 was US$10.23 billion. The stock has since increased to US$11.2 billion as at end December 2019. This was on account of new disbursements on existing loans mostly earmarked for infrastructure development” the Minister of Finance has said, during his state of the nation address.

The Minister says the stock of Government securities at end of 2019 was K80.2 billion from K60.3 billion at end-June 2019 saying the increase is explained by the issuance of Government securities to finance the budget deficit for 2019.

“The stock of domestic arrears, excluding VAT, amounted to K26.2 billion at end-September 2019 from K20.2 billion at end June 2019” he said.

On economic outlook, the Minister stated that economic growth in 2020 and the medium term is expected to be above 3 percent. Risks to the medium-term growth projection relate to climate change, particularly in the agricultural and energy sectors, ineffective implementation of fiscal consolidation measures and uncertainty in the global economy.

The fiscal deficit is expected to be around the projected 5.5 percent of GDP. This will be on account of measures Government is undertaking to enhance revenue collection as well as to deal with the debt portfolio. The Ministry will also give special focus in 2020 to funding social sectors particularly pensions, social cash transfer and health and education sectors whose allocation in 2019 was not met. Further the Ministry will focus efforts at domestic arrears dismantling.

Inflation is expected to remain high in the 1st half of the year on account of the pass-through effect of the exchange rate depreciation and the increase in fuel and electricity prices. The rate is expected to start tapering down in the second half of the year due to a reduction in food prices as fresh produce begins coming onto the market.

Dr. Ng’andu explained that the government will continue implementing measures aimed at stabilising and augmenting external reserves. The measures include reducing outlays on debt service, Bank of Zambia purchases of foreign exchange from the market as well as purchases of gold as a reserve asset.

Copyright © 2020 ZR.

12 Comments

  1. Seer 1

    Will see what will happen next

  2. Man of substance

    This country our own mother Zambia ,I don’t know what will happen in future

  3. Jmmy@8

    The economy is very bad pleas work had and correct things mr N’gandu

  4. Wisdom

    Comment. Someone said it that these crookes are going to mess up our economy and yet we even shouted louder ‘ pabwato pabwato’ she now.

  5. Sir b

    Ubuteko bwesu my Zambia
    Kuwayawafye

  6. Kay Lee

    Anyway thank you for the info ba Minister BUT the problem is its not good news at all so dont be suprised if we dont clap hands at the end of your speech.Elo izo nkongole mumatenga imwe bene but the ones to pay back its us the poor citizens.And to make it worse when getting those loan ,very nice project proposals you present kuli bene akupasani but when the money comes awe sure nishi ni zanu mwadya kwasila when time to pay back comes ati iyo we are removing fuel and electricity subsidies Oh awe iyi ni Phase 2 ya electricity tarriff increament No we are putting Toll Gates on all roads Iyai apa manje alibonse alipila malaiti nishi ali na Tv so Tv licence tajubako kudala , awe Digital migration mpaka mwatipoka 5kwacha by force ati TV Levy, Oh manje apa we are introducing new Zesco Meters to regulate consumption.Eiiish ! imwe you borrow and plunder ife we pay back the hard way pa last you will tell us to pay tax for our own Toilets and Pit latrines .Awe Boss Pf govt your experts at oppression and Law making.

  7. Shadrick matimba

    Shame on Zambian Gorverment, how can a man have billions of dollars like 98billion dollars man like bill gates but a nation like Zambia falling to pay back 11.2billion dallars shame on you Zambia and you have caused you own people to suffer

  8. Shadrick matimba

    how can a man have billions of dollars like 98billion dollars man like bill gates but a nation like Zambia falling to pay back 11.2billion dallars shame on you Zambia and you have caused you own people to suffer

  9. two 3

    fruits of pf so bitter cant take them any more

  10. Original Rock

    Zambia to much kawalala

  11. Angoni

    BA Minister reduce this debt before it completely chokes the country

  12. Lyton

    Come 2021 ni forward chabe

Comments are closed.